ocean view
Full time employment: Posting here.
The former FA got us into a non-traded REIT investment 18 months ago. It is roughly 8% of our portfolio, and in 18 months has increased 5% in value.
Since this is non-traded (and we are estranged from our prior FA) there is little information about what the future holds for this investment other than SEC filings. I can see that they have closed the investment to new investors. They invest in warehouses (Amazon, Home Depot, etc.), by the way, so not as bleak as the shopping mall REITs.
Honestly, I'd like to get out of this investment as I don't really understand it and am nervous about a market downturn. They do have a share redemption option, but at 18 months in, we would take a 7.5% haircut. That decreases to 5% at 2 years of ownership. You can get 100% back only after 4 years.
I've been trying to research exit strategy options on the bogleheads and it sounds like seeking redemption can be a long and slow process. The fund has some complex formula to determine what redemption requests they will approve. Selling on a secondary market seems to cost a lot more than 7.5%.
Do any of you hold non-traded REITs? What happens to the value in a market downturn? Maybe I just need to relax and let this play out. I think it is the not understanding the investment that has me concerned. What would you do?
thanks in advance.
Since this is non-traded (and we are estranged from our prior FA) there is little information about what the future holds for this investment other than SEC filings. I can see that they have closed the investment to new investors. They invest in warehouses (Amazon, Home Depot, etc.), by the way, so not as bleak as the shopping mall REITs.
Honestly, I'd like to get out of this investment as I don't really understand it and am nervous about a market downturn. They do have a share redemption option, but at 18 months in, we would take a 7.5% haircut. That decreases to 5% at 2 years of ownership. You can get 100% back only after 4 years.
I've been trying to research exit strategy options on the bogleheads and it sounds like seeking redemption can be a long and slow process. The fund has some complex formula to determine what redemption requests they will approve. Selling on a secondary market seems to cost a lot more than 7.5%.
Do any of you hold non-traded REITs? What happens to the value in a market downturn? Maybe I just need to relax and let this play out. I think it is the not understanding the investment that has me concerned. What would you do?
thanks in advance.